|
on Environmental Economics |
| By: | Louise Kessler |
| Abstract: | The permafrost carbon feedback is not currently taken into account in economic assessments of climate change, yet it could have important implications for the social cost of carbon and the associated choice of the optimal greenhouse gas emissions pathway. Although this feedback is still imperfectly known, there are enough estimates of its potential strength to now include it in our assessments. In this paper, I present a model of the permafrost carbon feedback and integrate it in the DICE Integrated Assessment Model to examine its consequences. I find that doing so increases the social cost of carbon by 10-20% in the base case scenario, but that this impact is much more signifcant in the case of a more convex damage function and can reach up to 220%. It follows that setting industrial emissions targets without taking into account the permafrost carbon feedback would lead to excessive atmospheric carbon: I find that it increases the optimal emissions rate by c. 8 percentage points on average over the period 2015-2100. These results are yet another illustration of the crucial role of discounting and damage functions in economic assessments of climate change but also make a clear case for including the permafrost carbon feedback in the current debate about the appropriate stringency of climate mitigation commitments. |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp219&r=env |
| By: | Hélène Benveniste (Institut Pierre-Simon Laplace (IPSL) - CNRS - Centre National de la Recherche Scientifique); Patrick Criqui (équipe EDDEN - PACTE - Politiques publiques, ACtion politique, TErritoires - Grenoble 2 UPMF - Université Pierre Mendès France - UJF - Université Joseph Fourier - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique); Olivier Boucher (LMD - Laboratoire de Météorologie Dynamique - ENS Paris - École normale supérieure - Paris - UPMC - Université Pierre et Marie Curie - Paris 6 - INSU - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique); Francois-Marie Breon (Laboratoire des sciences du Climat de l'Environnement (UMR 8212) - Commissariat à l'Energie Atomique et aux Energies Alternatives); Celine Guivarch (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - CIRAD - Centre de coopération internationale en recherche agronomique pour le développement - EHESS - École des hautes études en sciences sociales - École des Ponts ParisTech (ENPC) - AgroParisTech - AgroParisTech); Emmanuel Prados (STEEP - Sustainability transition, environment, economy and local policy - Inria Grenoble - Rhône-Alpes - INRIA - Institut National Polytechnique de Grenoble (INPG) - LJK - Laboratoire Jean Kuntzmann - Grenoble 2 UPMF - Université Pierre Mendès France - UJF - Université Joseph Fourier - Institut Polytechnique de Grenoble - Grenoble Institute of Technology - CNRS - Centre National de la Recherche Scientifique); Sandrine Mathy (équipe EDDEN - PACTE - Politiques publiques, ACtion politique, TErritoires - Grenoble 2 UPMF - Université Pierre Mendès France - UJF - Université Joseph Fourier - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique); Laetitia Chevallet (équipe EDDEN - PACTE - Politiques publiques, ACtion politique, TErritoires - Grenoble 2 UPMF - Université Pierre Mendès France - UJF - Université Joseph Fourier - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique); Laureline Coindoz (équipe EDDEN - PACTE - Politiques publiques, ACtion politique, TErritoires - Grenoble 2 UPMF - Université Pierre Mendès France - UJF - Université Joseph Fourier - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique); Hervé Le Treut (UPMC - Université Pierre et Marie Curie - Paris 6) |
| Abstract: | Considering that limiting global warming to below 2°C implies a CO2 budget not to be exceeded and near-zero emissions by 21OO (IPCC), we can assess global 2030 greenhouse gas emissions implied by INDCs in comparison to long-term trajectories. Ahead of the COP21, we estimate that submitted INDCs would bring global greenhouse gas emissions in the range of 55 to 64 GtC02eq in 2030. Under this assumption,global emissions in 2030 are thus higher than the level of 51GtC0 2eq for the year 2012. However, this is not in contradiction with a peaking of global emissions that can only be expected after 2020, given in particular the projected dynamics of emissions in China and other developing countries. The published INDCs represent a significant step towards trajectories compatible with the 2°C goal,but remain insufficient to join trajectories presenting a reasonable probability of success. ln order to increase the chance of meeting the 2°C objective, the ambition of the short-term contributions needs to be strengthened in future negotiations. ln order to sustain a high pace in emissions reductions after 2030,structural measures are also needed, which, in order to have a rapi impact, should be prepared as early as possible. Continued efforts are needed to accelerate the development of low carbon solutions on the one hand,and demonstrate the feasibility of negative emissions on the other hand. |
| Keywords: | COP21 ,INDC , CLIMATE NEGOCIATIONS , EMISSIONS REDUCTION |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-01245354&r=env |
| By: | Andrea Baranzini; Jeroen van den Bergh; Stefano Carattini; Richard Howarth; Emilio Padilla; Jordi Roca |
| Abstract: | The idea of a global carbon price has been a recurrent theme in debates on international climate policy. Discarded at the Conference of Parties (COP) of Copenhagen in 2009, it remained part of deliberations for a climate agreement in subsequent years. Unfortunately, there is still much misunderstanding about the reasons for implementing a global carbon price. As a result, ideological and political resistance against it prospers. Here we present the main arguments in favor of a carbon price to stimulate a fair and well-informed discussion about climate policy instruments. This includes arguments that have received surprisingly little attention so far. It is stressed that a main reason to use carbon pricing is environmental effectiveness, so not only economic efficiency (including the special case of cost-effectiveness). In addition, we provide ideas on how to implement a uniform global carbon price, whether using a carbon tax or emissions trading. |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp224&r=env |
| By: | Katrina Brandon |
| Abstract: | Tropical forests exert a more profound influence on weather patterns, freshwater, natural disasters, biodiversity, food, and human health – both in the countries where forests are found and in distant countries – than any other terrestrial biome. This report explains the variety of environmental services tropical forests provide and the science underlying how forests provide these services. Tropical deforestation and degradation have reduced the area covered by tropical forests from 12 percent to less than 5 percent of Earth’s land area. Forest loss and degradation has reduced or halted the flows of a wide range of ecosystem goods and services, increasing the vulnerability of potentially billions of people to a variety of damaging impacts. Established and emerging science findings suggest that we have substantially underestimated the global importance of tropical forests and the impacts of their loss on human well-being. |
| Keywords: | Climate change, Ecosystem services, Energy, Food, Forests, Health, REDD+, Valuation, Water |
| JEL: | Q23 Q51 Q54 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:380&r=env |
| By: | Daniel Becker (Faculty of Business Administration and Economics, European University Viadrina, Frankfurt (Oder)); Clemens Heuson; Wolfgang Peters (Faculty of Business Administration and Economics, European University Viadrina, Frankfurt (Oder)); Ulrike Will (Faculty of Business Administration and Economics, European University Viadrina, Frankfurt (Oder)) |
| Abstract: | Handlungsempfehlungen (deutsch): 1. Die volle Wirksamkeit des Emissionshandels (ETS) wird dann gewährleistet, wenn pauschale Ausnahmetatbestände unterbleiben. Insbesondere die Carbon-Leakage-Liste sollte durch einen vollständigen Grenzausgleich ersetzt werden. 2. Grenzausgleichsinstrumente helfen bei der Vermeidung des Carbon Leakage und stellen zudem die Wettbewerbsneutralität europäischer Unternehmen wieder her. 3. Die Belastung durch den Grenzausgleich muss sich eng an der tatsächlichen Belastung durch das ETS orientieren. 4. Eine produkt- bzw. sektorenbezogene Grenzausgleichssteuer ist gut mit dem WTO-Recht vereinbar, dabei wettbewerbsneutral, klimapolitisch wirksam und unbürokratischer als andere Formen des Grenzausgleichs. 5. Die neuen Exportfreistellungen sind nur auf die tatsächlich exportierten Produkte zu beschränken. Die Exportbefreiungen mindern die Effektivität des Emissionshandels dann nicht, wenn sie vom Cap abgezogen werden. 6. Das Ausland sollte zwischen Grenzausgleich und der Einbindung in das ETS wählen können. 7. Die Investition der Einnahmen aus der Importbesteuerung bzw. aus dem integrierten Zertifikatehandel in geeignete Klimafonds ermöglicht eine doppelte klimapolitische Dividende. Policy recommendations (english): 1. The Emission Trading System (ETS) will be fully effective if its discretionary exemptions are omitted. The carbon-leakage list in particular should be replaced with a full border adjustment (BA). 2. The BA helps to prevent carbon leakage and restores competitive neutrality to EU enterprises. 3. The burden of the BA must be closely linked to the actual burden of the ETS. 4. A product- or sector-based BA is likely to be compatible with WTO rules, correspond to the principle of competitive neutrality, have a positive effect on climate protection, and be less bureaucratic than other forms of BA. 5. The new export rebates must be limited to products that are actually exported. Export rebates do not limit the effectiveness of the ETS if they are accounted for when fixing the cap. 6. Foreign countries should have the choice between two options: the BA and integration into the ETS. 7. If the revenue of the import BA respective of the integrated ETS is used for climate funding, a double dividend for climate protection can be facilitated. |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:euv:dpaper:18&r=env |
| By: | Till Pistorius and Laura Kiff |
| Abstract: | The concept of Reducing Emissions from Deforestation and Forest Degradation (REDD+) and its framing of forest protection as a climate mitigation approach mark a clear paradigm shift – after decades of up-front financing of traditional ODA projects REDD+ follows the logic of ex-post payments for measured and verified performance within much larger jurisdictions. Germany has been among the major donor countries supporting forest protection for a long time: during the last three decades it has continuously supported developing countries in their efforts to cope with unsustainable use and conversion of forests through direct programming and activities within its bilateral development cooperation. Convinced of the urgency to facilitate an effective transformative change in the global land sector, Germany continues its support and is also among those countries that promoted REDD+ early on. It considers the concept as a major chance to slow down and eventually reverse the overuse and conversion of forests, especially in recognition that traditional development assistance has not succeeded in stopping the detrimental uses of forest lands. REDD+ is seen as a way to break new ground in order to increase the efficiency and effectiveness of international support. |
| Keywords: | Climate change, Forests, REDD+, Germany |
| JEL: | Q23 Q54 Q58 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:390&r=env |
| By: | Marbuah, George (Department of Economics, Swedish University of Agricultural Sciences); Gren, Ing-Marie (Department of Economics, Swedish University of Agricultural Sciences) |
| Abstract: | This paper addresses the issue of whether or not social capital explains per capita CO2 emissions dynamics in Swedish counties in an augmented environmental Kuznets curve framework. By accounting for issues of endogeneity in the presence of dynamic and spatial effects using geo-referenced emissions data, we show that per capita carbon emissions in a county matters for other counties and that net of economic, demographic and environmental factors, social capital has the potential to reduce carbon emissions in Sweden albeit less robustly. We test two different social capital constructs; trust in government and environmental engagement. Specifically, trust in the government inures to the reduction in CO2 emissions. Membership and engagement in environmental organisations reduces CO2 emissions only through its interaction with per capita income or trust. The implication of our estimates suggest that investment geared toward increasing the stock of social capital could inure to reductions in CO2 emissions in addition to climate policy instruments in Sweden |
| Keywords: | Social capital; environmental Kuznets curve; co2 emissions; spatial analyses; Sweden |
| JEL: | C23 Q53 Q56 Z13 |
| Date: | 2015–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slueko:2015_005&r=env |
| By: | Fujii, Hidemichi; Managi, Shunsuke |
| Abstract: | Environmental protection technology plays an important role in a sustainable society, simultaneously promoting economic development and pollution control. This study examines the determinants of technology inventions related to environmental protection in Japan. We use patent application data in a decomposition analysis framework. We find that environmental patent applications increase according to the prioritization of environmental patents by private companies and according to efficiency improvements in patent applications in the public sector. Additionally, patent applications related to emissions trading increased rapidly among private companies, mainly due to their increased priority after 2005. The different determinants of environmental technologies between the private and public sectors are useful for formulating effective policies to promote environmental innovation. |
| Keywords: | Green invention; decomposition analysis; research and development strategy; patent data; log mean Divisia index |
| JEL: | O32 Q55 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69592&r=env |
| By: | Tobias Stucki (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Martin Wörter (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | Environmental benefits only unfold if green (environmentally friendly) technologies are widely diffused and intensively deployed within a firm. We investigate how different types of policies - directly and in combination - affect the number of different green energy technologies adopted by a single firm (intra-firm diffusion). Using data from a dedicated survey on the diffusion of green energy technologies of 1200 Swiss firms and applying well-identified econometric models, we found that energy taxes are a very effective policy instrument for the intra-firm diffusion of green energy technologies. Even more important, however, are non-political measures that show the largest effect among all tested instruments. Additional analyses show that (a) time-consistency in policy making is more important for energy tax regimes than for regulations and (b) no evidence for complementarities between the policy types could be identified. |
| Keywords: | Technology Adoption, Innovation, Policies, Intra-firm diffusion, Survey data |
| JEL: | O31 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:16-401&r=env |
| By: | Hao Yu; Su-Yan Pan; Bao-Jun Tang; Zhi-Fu Mi; Yan Zhang; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology) |
| Abstract: | This paper calculates the energy consumption and CO2 emissions of Beijing over 2005-2011 in light of the Beijing's energy balance table and the carbon emission coefficients of IPCC. Furthermore, based on a series of energy conservation planning program issued in Beijing, the LEAP-BJ model is developed to study the energy consumption and CO2 emissions of Beijing's six end-use sectors and the energy conversion sector over 2012-2030 under the BAU scenario and POL scenario. Some results are found in this research: (1) during 2005-2011, the energy consumption kept increasing, while the total CO2 emissions fluctuated obviously in 2008 and 2011. The energy structure and the industrial structure have been optimized to a certain extent. (2) If the policies are completely implemented, the POL scenario is projected to save 21.36% and 35.37% of the total energy consumption and CO2 emissions than the BAU scenario during 2012 and 2030. (3) The POL scenario presents a more optimized energy structure compared with the BAU scenario, with the decrease of coal consumption and the increase of natural gas consumption. (4) The commerce and service sector and the energy conversion sector will become the largest contributor to energy consumption and CO2 emissions, respectively. The transport sector and the industrial sector are the two most potential sectors in energy savings and carbon reduction. In terms of sub-scenarios, the TEC is the most effective one. (5) The macro parameters, such as the GDP growth rate and the industrial structure have great influence on the urban energy consumption and carbon emissions. |
| Keywords: | Urban, Energy consumption, CO2 emissions, Scenario analysis, LEAP model |
| JEL: | Q47 Q54 |
| Date: | 2014–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:70&r=env |
| By: | Zhang,Fan; Huang,Tao |
| Abstract: | This paper analyzes the dynamic effects of rate-of-return regulation on firms? emissions compliance behavior when the price of emissions permits is uncertain. The paper shows that uncertainty regarding the price of permits would motivate a regulated firm to adopt a more self-sufficient strategy and would reduce the cost-effectiveness of emission allowance trading. When allowance transactions are treated as capital investments, uncertainty could reverse the classic Averch-Johnson effect, so that a regulated firm would purchase fewer permits in the ex ante period than its unregulated counterpart. These results are driven by the asymmetric impact of a price change on the expected marginal value of allowances under rate-of-return regulation. A wider variation in the permit price and a decline in the regulated rate of return would amplify the asymmetry. These results have implications for the efficiency of the proposed global carbon trading system. |
| Keywords: | Energy Production and Transportation,Debt Markets,Climate Change Mitigation and Green House Gases,Markets and Market Access,Climate Change Economics |
| Date: | 2015–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7343&r=env |
| By: | Narita, Daiju; Klepper, Gernot |
| Abstract: | Carbon dioxide capture and storage (CCS) is considered to be an important option for reducing carbon dioxide (CO2) emissions. However, there are still concerns about its economic viability, especially if the risk of leakage in the storage site is taken into account. We use a real options approach for assessing the impact of uncertainty on the timing and the profitability of CO2 storage projects. We model an investment decision for a storage site under uncertainty about CO2 leaking from the storage site, about the development of carbon prices, and about the cost of investment. The numerical model results show that investment under these uncertainties requires a much larger price for carbon credits for storage than an investment plan ignoring uncertainty would suggest. We also show under reasonable parameter assumptions that the risk for investing in CO2 storage is dominated by the uncertain development of carbon prices, whereas the risk of carbon leakage has little influence on the investment decision. |
| Keywords: | carbon dioxide capture and storage (CCS),real options analysis,climate policy |
| JEL: | D81 Q49 Q54 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2002&r=env |
| By: | Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology); Zhi-Fu Mi; Zhiming Huang |
| Abstract: | This study utilizes the bibliometric method on climate policy modeling based on the online version of SCI-E from 1981 to 2013 and SSCI from 2002 to 2013, and summarizes several important research topics and methodologies in the field. Publications referring to climate policy modeling are assessed with respect to quantities, disciplines, most productive authors and institutes, and citations. Synthetic analysis of keyword frequency reveals six important research topics in climate policy modeling which are summarized and analyzed. The six topics include integrated assessment of climate policies, uncertainty in climate change, equity across time and space, endogeneity of technological change, greenhouse gases abatement mechanism, and enterprise risk in climate policy models. Additionally, twelve types of models employed in climate policy modeling are discussed. The most widely utilized climate policy models are optimization models, computable general equilibrium (CGE) models, and simulation models. |
| Keywords: | Climate policy, Integrated assessment, Enterprise risk, Bibliometric, Word frequency analysis |
| JEL: | Q40 Q54 Q58 |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:58&r=env |
| By: | Ke Wang; Bin Lu; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology) |
| Abstract: | Energy and environmental efficiency evaluation has recently attracted increasing interest in China. In this study, we utilize the Range-Adjusted Measure (RAM) based nonparametric approach to evaluate the regional energy and environmental efficiency of China over the period of 2006-2010. The desirable/good and undesirable/bad outputs, as well as the energy and non-energy inputs are considered in the efficiency evaluation so as to characterize the energy consumption, economic production, and CO2 emission process of different China's regions. In addition, the economic concepts of natural disposability and managerial disposability are incorporated in the evaluation instead of the strong and weak disposability in conventional environmental efficiency evaluation. Therefore, the types of returns to scale and damages to scale of different China's regions are measured and correspondingly the strategy and policy implications are proposed for guiding the future improvement of regional energy and environmental efficiency. This study finds that: i) Beijing, Shanghai, and Guangdong had the highest integrated energy and environmental efficiency during the study period, which could be seen as the benchmarks of inefficient China's regions. ii) On average, east China had the highest integrated efficiency under natural disposability, and west China had the highest integrated efficiency under managerial disposability. iii) During 2006-2010, the average production efficiency of China slightly decreased and the average emission efficiency of China slightly increased. v) Among China's 30 regions, 19 regions exhibited decreasing returns to scale, 4 regions shown increasing returns to scale, and 7 regions have mixed returns to scale types under natural disposability in our study period. In addition, under managerial disposability, there are 18, 3 and 9 regions respectively exhibited increasing, decreasing and mixed damages to scale types over time. v) For most Chinese regions, it is not recommended to simply increase or maintain their current scales of production, but alternatively, they should pay more attentions on technology innovation of energy utilization efficiency improvement, since up to 2010, China still had large energy conservation and emission reduction potentials. |
| Keywords: | Energy and environmental efficiency, Range-Adjusted Measure (RAM), Returns to scale, Damages to scale |
| JEL: | Q40 Q58 |
| Date: | 2014–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:61&r=env |
| By: | Abel A. Ramoelo; Mosesazong M.A. Cho; Renaud R. Mathieu; S. S. Madonsela; Ruben Van De Kerchove; Zaneta Kaszta; Eléonore Wolff |
| Abstract: | Land use and climate change could have huge impacts on food security and the health of various ecosystems. Leaf nitrogen (N) and above-ground biomass are some of the key factors limiting agricultural production and ecosystem functioning. Leaf N and biomass can be used as indicators of rangeland quality and quantity. Conventional methods for assessing these vegetation parameters at landscape scale level are time consuming and tedious. Remote sensing provides a bird-eye view of the landscape, which creates an opportunity to assess these vegetation parameters over wider rangeland areas. Estimation of leaf N has been successful during peak productivity or high biomass and limited studies estimated leaf N in dry season. The estimation of above-ground biomass has been hindered by the signal saturation problems using conventional vegetation indices. The objective of this study is to monitor leaf N and above-ground biomass as an indicator of rangeland quality and quantity using WorldView-2 satellite images and random forest technique in the north-eastern part of South Africa. Series of field work to collect samples for leaf N and biomass were undertaken in March 2013, April or May 2012 (end of wet season) and July 2012 (dry season). Several conventional and red edge based vegetation indices were computed. Overall results indicate that random forest and vegetation indices explained over 89% of leaf N concentrations for grass and trees, and less than 89% for all the years of assessment. The red edge based vegetation indices were among the important variables for predicting leaf N. For the biomass, random forest model explained over 84% of biomass variation in all years, and visible bands including red edge based vegetation indices were found to be important. The study demonstrated that leaf N could be monitored using high spatial resolution with the red edge band capability, and is important for rangeland assessment and monitoring. |
| Keywords: | Biomass; Leaf nitrogen; Random forest model; Rangeland quality; Red edge band; WorldView-2 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/226509&r=env |
| By: | Mihai, Florin-Constantin |
| Abstract: | Low coverage of urban and rural population to waste collection services leads to various environmental threats caused by uncontrolled waste disposal. New EU regulations on waste management issues transposed into national laws have improved this sector, but, the population access to such services is still low compared to others new EU members. A multi-scale approach of this indicator is a necessary tool for a proper analysis of this environmental issue. The maps reveal that Romanian development regions (NUTS 2) have the lowest coverage rates at EU level in 2010. Furthermore, major disparities are reflected between Romanian counties in 2010. Thematic maps outline a comparative analysis at national and regional scale (Romanian counties & cities and communes of North-East Region) between urban vs rural areas in 2010. These geographical approaches are necessary for a better monitoring process of waste management sector. |
| Keywords: | multi-scale analysis, waste collection services, disparities, thematic cartography, municipal waste, |
| JEL: | K32 O18 O44 Q50 Q53 Q56 Q58 R11 R53 R58 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69069&r=env |
| By: | Maria Waldinger |
| Abstract: | Recent studies have consistently found important economic effects of year-to-year weather fluctuations. This paper studies the economic effects of long-term and gradual climate change, over a period of 250 years, when people have time to adapt. In particular, I study the effects of the Little Ice Age, a historical episode of long-term climate change. Results show significant negative economic effects of long-term climate change. Cities with good access to trade were substantially less affected. Results from yearly historical wheat prices and yield ratios show that temperature change impacted economic growth through its effect on agricultural productivity. Further evidence shows a lack of adaptation. I show evidence of the relevance of these results to the context of contemporary developing countries and recommend ways in which these findings may improve Integrated Assessment Models. |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp214&r=env |
| By: | Ariane Tichit (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Centre National de la Recherche Scientifique - Université d'Auvergne - Clermont-Ferrand I) |
| Abstract: | Noting the risk of collapse of our civilization by 2030 if major trends are not curbed rapidly, this article argues that local complementary currencies could be vectors of real change in the near future. Their potential transforming power appears in the questioning of the monetary and financial system. Indeed, how the money is created and used, by whom and for what is fundamental in formation and propagation of values, beliefs and the evolution of our societies. However, environmental policies currently envisaged take very little account of it. The proposals from the "weak" interpretation of sustainable development, that is to say the one seeking to maintain the current organizational structure, are not up to the challenges. In contrast, the radical reversal of values and lifestyles that would induce the adoption of a "strong" vision of sustainable development does not seem attainable on a short time horizon. Therefore, touching the heart of our organizations, local complementary currencies could make the current monetary system of monoculture to evolve to a world full of diversity, opening channels for the financing of low-carbon activities, and enhancement of behaviors consistent with sustainable development. |
| Keywords: | Sustainable development , Local complementary currencies. |
| Date: | 2016–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01255802&r=env |
| By: | Gabriel Bachner (University of Graz) |
| Abstract: | In the light of climate change, transport systems become increasingly stressed by extreme weather and gradual climatic changes, resulting in direct costs which arise in the affected sector as well as indirect costs due to economic spill-over effects. To attenuate these costs, sector specific adaptation measures are needed, raising the question of the net-benefits of adaptation at a macroeconomic level. However, despite their importance such assessments of impacts and adaptation at the macro-level are scarce and coarse in their implementation. This paper contributes to fill this research gap by analyzing specific adaptation measures for the land transport sectors. To reveal both direct and indirect effects of impacts and adaptation a computable general equilibrium model is deployed. Results confirm the importance of a macroeconomic framework since the indirect effects are found to be larger than the direct ones due to strong economic interlinkages with the transport system. Adaptation measures are able to reduce climate change induced GDP and welfare losses as well as unemployment; even though adaptation does not always seem economically reasonable at the business level. |
| Keywords: | Climate change; transport; impacts; adaptation; computable general equilibrium; |
| JEL: | C68 Q51 Q54 Q58 R42 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:grz:wpaper:2015-01&r=env |
| By: | Ariane TICHIT (Centre d'Etudes et de Recherches sur le Développement International(CERDI)) |
| Abstract: | Noting the risk of collapse of our civilization by 2030 if major trends are not curbed rapidly, this article argues that local complementary currencies could be vectors of real change in the near future. Their potential transforming power appears in the questioning of the monetary and financial system. Indeed, how the money is created and used, by whom and for what is fundamental in formation and propagation of values, beliefs and the evolution of our societies. However, environmental policies currently envisaged take very little account of it. The proposals from the "weak" interpretation of sustainable development, that is to say the one seeking to maintain the current organizational structure, are not up to the challenges. In contrast, the radical reversal of values and lifestyles that would induce the adoption of a "strong" vision of sustainable development does not seem attainable on a short time horizon. Therefore, touching the heart of our organizations, local complementary currencies could make the current monetary system of monoculture to evolve to a world full of diversity, opening channels for the financing of low-carbon activities, and enhancement of behaviors consistent with sustainable development. |
| Keywords: | Sustainable development ; Local complementary currencies. |
| JEL: | Q01 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdi:wpaper:1775&r=env |
| By: | Martin Persson, Sabine Henders, and Thomas Kastner |
| Abstract: | This paper aims to improve our understanding of how and where global supply-chains link consumers of agricultural and forest commodities across the world to forest destruction in tropical countries. A better understanding of these linkages can help inform and support the design of demand-side interventions to reduce tropical deforestation. To that end, we map the link between deforestation for four commodities (beef, soybeans, palm oil, and wood products) in eight case countries (Argentina, Bolivia, Brazil, Paraguay, Democratic Republic of the Congo, Indonesia, Malaysia, and Papua New Guinea) to consumption, through international trade. Although few, the studied countries comprise a large share of the internationally traded volumes of the analyzed commodities: 83% of beef and 99% of soybean exports from Latin America, 97% of global palm oil exports, and roughly half of (official) tropical wood products trade. The analysis covers the period 2000-2009. We find that roughly a third of tropical deforestation and associated carbon emissions (3.9 Mha and 1.7 GtCO2) in 2009 can be attributed to our four case commodities in our eight case countries. On average a third of analyzed deforestation was embodied in agricultural exports, mainly to the EU and China. However, in all countries but Bolivia and Brazil, export markets are dominant drivers of forest clearing for our case commodities. If one excludes Brazilian beef on average 57% of deforestation attributed to our case commodities was embodied in exports. The share of emissions that was embodied in exported commodities increased between 2000 and 2009 for every country in our study except Bolivia and Malaysia. |
| Keywords: | Climate change, Forests, REDD+, Commodities, Commodity supply chains, Energy, Food, Agriculture. |
| JEL: | Q23 Q54 L73 Q02 Q17 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:384&r=env |
| By: | Delmas, Magali A.; Olivier, Gergaud; Lim, Jinghui |
| Abstract: | Eco-labels are part of a new wave of environmental policy that emphasizes information disclosure as a tool to induce environmentally friendly behavior by both firms and consumers. Little consensus exists as to whether eco-certified products are actually better than their conventional counterparts. This paper seeks to understand the link between eco-certification and product quality. We use data from three leading wine rating publications (Wine Advocate, Wine Enthusiast, and Wine Spectator) to assess quality for 74,148 wines produced in California between 1998 and 2009. Our results indicate that eco-certification is associated with a statistically significant increase in wine quality rating |
| Keywords: | eco-labels, credence goods, information disclosure policy, asymmetric information, product quality, Agribusiness, Demand and Price Analysis, Environmental Economics and Policy, Marketing, Q56, Q13, L15, L66, Q21, |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aawewp:231134&r=env |
| By: | Stöver, Jana |
| Abstract: | This paper investigates the effect of institutional quality on sustainable development.Institutional quality is assumed to determine the (perceived) risk in the face of which oil and mining firms determine their level of investment in physical and natural capital. Since these two types of capital are used jointly in the industry's production process, the firms face a dual investment decision, whereby they have to decide on the investment into both types of capital simultaneously. It is shown that this production structure implies that better institutional quality can increase as well as decrease the speed of resource extraction. However, due to the structure of national accounting data, this fact has so far not been adequately accounted for in preceding studies. By integrating the dual investment model into the green accounting approach it is then shown that the form of capital aggregation in national accounting can lead to an underestimation of the effect of institutional quality on sustainable development and potentially on economic growth. The results imply that it could be useful to investigate the macroeconomic effects of institutional quality on the oil and mining sector separately from those on the rest of the economy. |
| Keywords: | exhaustible resource extraction,institutions,ownership risk,resource curse,adjusted net saving / genuine saving,green accounting,sustainable development |
| JEL: | Q32 Q56 Q01 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hwwirp:171&r=env |
| By: | Philippe Polomé (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France); Jérôme Trotignon (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France) |
| Abstract: | Brazilian Amazon deforestation rate is found to display a unit root and to be cointegrated with Brazilian GDP and its square – An Environmental Kuznets Curve (EKC). Although, it is not the first time that such an EKC is detected, this may be the first such time-series evidence. Detecting an EKC is hampered by several econometric issues that have been shown to lead to possibly spurious results in cross-section and panel contexts, but are satisfactorily addressed in a cointegrated (time-series) framework. Alternative theories for explaining the deforestation path are rejected. There is evidence that the “Action Plan” of the Brazilian government against deforestation had an important effect. These results are in contrast to the economics literature on an EKC in emissions such asCO2, but appear to be consistent with a geographical sciences literature that considers that deforestation declines when alternative activities become available. |
| Keywords: | Amazon deforestation; unit root; cointegration; “Action Plan”policy; Environmental Kuznets Curve |
| JEL: | C22 Q23 Q28 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1608&r=env |
| By: | Bardsley, Nicholas (University of Reading); Büchs, Milena (University of Southampton); Schnepf, Sylke V. (European Commission) |
| Abstract: | Consumption surveys often record zero purchases of a good because of a short observation window. Only mean consumption rates can then be inferred. We show that propensity scores can be used to estimate each unit's consumption rate, revealing the distribution. We demonstrate the method using the UK National Travel Survey, in which c.40% of motorist households purchase no fuel. Estimated consumption rates are plausible judging by households' annual mileages, and highly skewed. We apply the same approach to estimate CO2 emissions and direct outcomes of a carbon cap or tax. Analysis of such policies based solely on means appears to have a negative bias, because of skewness of the underlying distributions. The regressiveness of a simple tax or cap is overstated, and redistributive features of a revenue-neutral policy are understated. |
| Keywords: | emissions reduction, fuel consumption, infrequent purchase, propensity score matching, surveys |
| JEL: | C13 D04 D12 H23 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9707&r=env |
| By: | Peyman Khezr (School of Economics, The University of Queensland); Ian A. MacKenzie (School of Economics, The University of Queensland) |
| Abstract: | This article investigates pollution permit auctions that incorporate allowance reserves. In these auctions the sale of a fixed quantity of permits is supplemented by an additional permit reserve. This reserve automatically releases permits if a sufficiently high price is triggered. The main justifications for implementing an allowance reserve are to reduce price volatility as well as assisting in cost containment. We show—paradoxically—that incorporating an allowance reserve into a permit auction can decrease firms’ payoffs, increase the clearing price, and increase the associated costs of compliance. This has direct policy implications for all major cap-and-trade markets, including the US Regional Greenhouse Gas Initiative. |
| Keywords: | permit auction, allowance reserve |
| JEL: | D44 Q52 |
| Date: | 2016–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:553&r=env |
| By: | Héctor M. Núñez (Division of Economics, CIDE); Hayri Onal |
| Abstract: | Brazil uses taxes, subsidies, and blending mandates as policy instruments to manage its transportation fuel markets. Despite all the market stabilization efforts, the fuels sector has been very dynamic in recent years. In response to ethanol supply fluctuations, the ethanol blending rate is adjusted at times and complemented with fuel tax rates changes. In this paper, we analyze the impacts of such policy adjustments and market disturbances in the world ethanol and sugar markets on Brazilian producers’ supply responses, consumers’ driving demand and fuel choice, ethanol trade with the rest of the world, greenhouse gas (GHG) emissions, and social welfare. As the analytical tool, we use a large-scale spatially explicit price endogenous mathematical programming model which simulates the resource utilization in agriculture and finds the simultaneous equilibrium in food and fuel markets. The model results show that reducing the ethanol blending rate would reduce the driving demand by conventional vehicles while lowering the tax rate on gasoline would encourage flex fuel vehicle users to switch from pure ethanol to gasohol resulting in larger GHG emissions due to the consumption of a more carbon intensive fuel blend. |
| Keywords: | Brazil fuel policy, mathematical programming, land use, greenhouse gas emissions |
| JEL: | Q42 Q55 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:emc:wpaper:dte570&r=env |
| By: | Ke Wang; Xueying Yu |
| Abstract: | Industrial energy and environment efficiency evaluation is essential in guiding national and environmental policy making, since the industrial sector is the largest energy consumer and major pollutants producer in China. This study utilizes the Range-Adjusted Measure (RAM) based models to evaluate the energy and environment efficiency of industrial sectors in 31 Chinese major cities. The empirical results show that eastern Chinese cities outperform their western counterparts in terms of industrial energy efficiency, and central Chinese cities outperform their eastern counterparts in terms of industrial environment efficiency. Under natural disposability, 23 cities exhibit decreasing returns to scale, and under managerial disposability, 18 cities exhibit increasing damages to scale. |
| Keywords: | Chinese city, energy and environment efficiency, industrial sector, Range-Adjusted Measure (RAM) |
| JEL: | Q40 Q58 |
| Date: | 2014–08–07 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:65&r=env |
| By: | Bing Wang; Su-Yan Pan; Ruo-Yu Ke; Ke Wang; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology) |
| Abstract: | Based on worldwide scholars' 3004 papers published in 658 academic journals in the Web of Science (WOS) database on the topic of climate change vulnerability from 1991 to 2012, this paper quantitatively analyzes the global scientific performance and hot research areas in this field by adopting bibliometric method. The results show that (i) the vulnerability researches on climate change have experienced a rapid growth since 2006 and the publications are widely distributed in a large number of source journals while the top two productive institutions are the University of East Anglia and Potsdam Institute for Climate Impact Research; (ii) the cooperation at author level is on the rise and there are closer relationships in institutional and national levels; (iii) the most widely focused research topics in this field include health issues in the socioeconomic system, food security in the field of agricultural system and the issue of water resource management, etc.; (iv) according to the papers from the top journals, we find that the research areas for climate change vulnerability in those publications are located in the ecological diversity, ecosystem service, water resource management and electric power supply, etc. |
| Keywords: | climate change, vulnerability, bibliometric, backward search |
| JEL: | Q40 Q58 |
| Date: | 2014–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:62&r=env |
| By: | Filippo Lechthaler (ETH Zurich, Switzerland); Alexandra Vinogradova (ETH Zurich, Switzerland) |
| Abstract: | The use of climate information in economic activities, typically provided by climate services, may serve as a possible adaptation strategy to changing climate conditions. The present paper analyzes the value of climate services aimed at improving agricultural productivity through a reduction in weather-associated risks. In the rst part, we provide a theoretical foundation for estimating the value of climate services by proposing a stochastic life-cycle model of a rural household which faces uncertainty with respect to the timing and the size of an adverse weather shock. We subsequently calibrate the model to match the environment of coee producers in the Cusco region of Peru and provide a range of estimates for the value of climate services for a single average household, the region, and the country as a whole. In the second part of the paper we use empirical data to verify the numerical estimates. We assess the value of climate services in the agricultural sector in Cusco based on a choice experiment approach. Data are analyzed using a standard as well as a random parameter logit model allowing for preference heterogeneity. Farmers show a signicant willingness-to-pay for enhanced climate services which is particularly related to the service accuracy and geographic resolution. On average, the yearly value of a climate service in the coffee sector is found to be in the range $20.64 - $21.10 per hectare and $8.1 - $8.2 million for Peru as a whole. |
| Keywords: | Agriculture, choice experiment, coee farming, coee rust, climate change adaptation, uncertainty |
| JEL: | C25 D81 H41 O13 Q12 Q16 Q51 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:16-231&r=env |
| By: | Carole Ropars–Collet; Mélody Leplat; Philippe Le Goffe; Marie Lesueur |
| Abstract: | The concept of multifunctionality of fishing activities is emerging, as fishery activities do not only provide commodity goods but have others functions (environmental, social, territorial, etc.). We choose to focus on the provision of amenities, such as the presence of fishing boats or direct sales of seafood, for which there is a demand that partly conditions the individual choices of visit on the coastline. We used a choice experiments method to estimate willingness to pay for these amenities produced jointly by commercial fishing. The empirical study was conducted on a sample of more than 2000 people surveyed along the coast of the Channel and of the North Sea in France, Belgium and United-Kingdom. We used a random parameter logit model to analysis the repeated individual choices. |
| Keywords: | Multifunctional fishery, Non-market value, Choice experiments; Multifunctional fishery, Non-market value, Choice experiments |
| JEL: | C35 C9 Q22 Q26 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:irf:wpaper:009&r=env |
| By: | Vicent Alcántara Escolano (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Emilio Padilla (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Matías Piaggio (Universidad de la República, Uruguay) |
| Abstract: | We analyse the NOX gas emissions of different productive sectors in Spain. Using input–output analysis, we study all sectors as subsystems of the economy and classify them according to the explanatory factors of their total (direct and indirect) emissions. This classification provides guidance on the type of policies that should be developed in the different sectors with the aim of mitigating NOX emissions. Some sectors that seem less important when looking at their direct emissions turn out to be highly relevant in terms of their total emissions. The results indicate that demand policies can be effective in these sectors, especially in construction, but also in some service sectors that do not appear to be important polluters at first sight. These policies can complement technical improvements and best practice measures applied to directly polluting sectors. |
| Keywords: | input-output analysis, Nox emissions, subsystems |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1601&r=env |
| By: | Chantal Toledo |
| Abstract: | Using a randomized experiment conducted in 17 favelas (shantytowns) in Rio de Janeiro, Brazil, this paper investigates the interplay between three levels of monetary incentives and an environmental persuasion communication on the take-up of an energy-efficient lightbulb (a light-emitting diode or, LED). |
| Keywords: | Energy efficient technologies, Favelas, Non Monetary incentives |
| JEL: | F Z |
| Date: | 2016–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:2bb0d990cda64b03b9699491eae54785&r=env |
| By: | Zemtsov, Stepan; Baburin, Vyacheslav; Koltermann, Klaus; Krylenko, Inna; Yumina, Natalia; Vladimir, Litvinov |
| Abstract: | Methods and results of social vulnerability and risk assessment are presented in the article. It is explored if modified methodology of the United Nations University (World risk index) can be used on different scale levels: regional, municipal and settlement. It was estimated that, despite the low value of the World risk index for Russia, southern coastal and mountain regions have high values of the risk index for hydrological phenomena because of higher frequency of the hazardous events, higher population density, and high social vulnerability. The Krasnodar region (in the south-western part of Russia) was chosen for a detailed analysis. A municipal risk index was developed, and municipal districts in the Kuban river mouth were identified as territories with the highest risk. For verification of the index results, the percentage of vulnerable people was estimated based on opinion polls. The results can be used in further risk calculation for other hazardous phenomena. |
| Keywords: | social vulnerability, hazardous hydrological phenomena, risk assessment, Russian regions, coastal areas |
| JEL: | Q51 Q54 R19 |
| Date: | 2014–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68928&r=env |
| By: | Wineman, A.; Ochieng, J.; Mason, N.; Kirimi, L. |
| Abstract: | Households in rural Kenya are sensitive to weather shocks through their reliance on rain-fed agriculture and livestock. This study used the latest data sets of historical weather and household panel data collected in 2000-2007 to understand the impact of exposure to weather extremes –including periods of high and low rainfall, heat, and wind– on household welfare. We find that all types of extreme weather affect household well-being, although effects sometimes differ with income and calorie estimates. Periods of drought are the most consistently negative weather shock across different income groups and agro-ecological regions. Exposure to low rainfall reduces income from both on- and off-farm sources, though households compensate for diminished on-farm production with food purchases. The study further explores the factors that offset the negative effects of drought, and finds that access to credit and membership in a savings group render a household more resilient. Thus, policies and programs to improve access to both financial services and food markets could enhance household resilience to weather shocks. |
| Keywords: | Environmental Economics and Policy, Food Security and Poverty, International Development, |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:midcpb:230982&r=env |
| By: | Gunawardena, J.; Muthuwatta, Lal; Fernando, M. J. J.; Rathnayake, S.; Rodrigo, T. M. A. S. K.; Gunawardena, A. (Central Environmental Authority (CEA).) |
| Keywords: | Environmental management; Forest plantations; Drug plants; Tea; Rubber industry; Agroforestry; Biodiversity; Wildlife; Freshwater; Water quality; Groundwater pollution; Water deficit; Land use; Paddy fields; Constructed wetlands; Carbon; Meteorology; Models; Satellite surveys; GIS; Remote sensing; Maps; Soil salinity; Erosion; Sand; Solar radiation; Watersheds; Aquifers; River basins; Tanks; Energy generation; Bioremediation; Waste management; Performance evaluation; Toxic substances; Pollutant load; Noise pollution; Denitrification; Leachates; Biofertilizers; Aquatic insects; Food production; Fishing; Farmers; Vegetable growing; Vermicomposting; Health hazards; Malaria; Case studies; Arid zones; Coastal area; Coral reefs |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:iwt:conprc:h046899&r=env |
| By: | Schinkel, Maarten Pieter; Spiegel, Yossi |
| Abstract: | Several competition authorities consider the exemption of horizontal agreements among firms from antitrust liability if the agreements sufficiently promote public interest objectives such as sustainable consumption and production. We show that when consumers value sustainable products and firms choose investments in sustainability before choosing output or prices, coordination of output choices or prices boosts investments in sustainability and may even enhance consumer surplus when products are sufficiently close substitutes and the marginal cost of investment in sustainability is relatively low. By contrast, coordination of investments in sustainability leads to lower investments and harms consumers. |
| Keywords: | antitrust; collusion; consumer surplus; public interest; Sustainability |
| JEL: | K21 L13 L40 Q01 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11102&r=env |